Rich dad uses financial leverage from "summary" of Rich Dad Poor Dad by Robert T Kiyosaki
One of the key principles that my rich dad taught me was the concept of financial leverage. He explained that financial leverage is a powerful tool that can be used to increase wealth and build assets. Essentially, financial leverage involves using borrowed money to invest in assets that have the potential to generate a higher return than the cost of borrowing. My rich dad used financial leverage to his advantage by taking out loans to invest in income-producing properties. By using other people's money to acquire real estate, he was able to build a portfolio of assets that generated passive income. This income allowed him to cover the cost of the loans and still have money left over for other investments. Rich dad understood that financial leverage could amplify both gains and losses. When used wisely, financial leverage can accelerate wealth accumulation. However, it also comes with risks, as borrowing money to invest means that you...
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